Asia Pacific Same Day Delivery Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 45.24 Billion |
| Market Size (2030) | USD 67.06 Billion |
| Growth Rate (2025 - 2030) | 8.19% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Asia Pacific Same Day Delivery Market Analysis by Mordor Intelligence
The Asia-Pacific same day delivery market size stands at USD 45.24 billion in 2025 and is projected to reach USD 67.06 billion by 2030, registering an 8.19% CAGR between 2025-2030. This expansion reflects the region’s shift toward instant commerce, where speed now outweighs price as the decisive factor for online transactions. E-commerce order volumes from China, India and key Southeast Asian capitals continue to rise, fed by friction-free digital payment rails and aggressive discounting by platforms eager to lock in loyalty. Capital flows into micro-fulfillment, autonomous sorting and EV-based last-mile fleets are lowering unit costs and widening service coverage at the same time. Increasing corporate demand for just-in-time (JIT) restocking is nudging logistics providers beyond consumer parcels into higher-margin B2B lanes, especially in tier-2 and tier-3 manufacturing corridors. Competitive intensity is sharpening as global integrators expand dedicated freighter capacity while regional specialists deploy hyper-local networks to secure service differentiation.
Key Report Takeaways
- By mode of transport, road retained 50.99% of the Asia-Pacific same day delivery market share in 2024, whereas air is forecast to post the quickest 8.27% CAGR between 2025-2030.
- By shipment weight, light weight parcels dominated 76.66% of the Asia-Pacific same day delivery market size in 2024, yet medium-weight consignments are accelerating at a 7.78% CAGR between 2025-2030.
- By destination, domestic lanes commanded a 68.25% revenue share in 2024 while international services are set to expand at an 8.39% CAGR between 2025 and 2030.
- By end user industry, e-commerce contributed 53.49% of the 2024 value; wholesale and retail trade is expected to outpace all peers with an 8.44% CAGR between 2025-2030.
- By country, China generated 72.86% of 2024 revenue, but India is positioned to log the fastest 12.38% CAGR from 2025 to 2030.
Asia Pacific Same Day Delivery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce growth and rising consumer immediacy | +1.8% | China, India, Southeast Asia | Short term (≤ 2 years) |
| Quick-commerce grocery and food-platform boom | +1.2% | Urban APAC, strongest in India & China | Medium term (2-4 years) |
| Urban micro-fulfillment and last-mile tech investments | +1.4% | Tier-1 cities expanding to tier-2/3 | Medium term (2-4 years) |
| Government investment in logistics and digital payments | +0.9% | India, China, select ASEAN | Long term (≥ 4 years) |
| Rapid EV two-wheeler adoption for last-mile cost control | +1.1% | China, India, Vietnam, Thailand | Medium term (2-4 years) |
| JIT B2B restocking demand in tier-2/3 Asian cities | +0.7% | Manufacturing hubs across APAC | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Explosive E-Commerce Growth and Rising Consumer Immediacy
Chinese platforms processed 174.5 billion parcels in 2024, and same-day delivery penetration hit 35% in tier-1 cities as 30-minute windows became the default service promise. Similar momentum surfaced in India, where the quick-commerce sector reached USD 6.1 billion, prompting traditional retailers to embed instant-delivery buttons across their omnichannel storefronts. Dense urban fulfillment grids have turned proximity into a competitive moat, with operators racing to position inventory within 5-10 kilometers of consumers. As a result, the Asia-Pacific same day delivery market is transitioning from speed as a premium feature to speed as a basic expectation, forcing all players—large or niche—to match ever-shrinking delivery windows. The ripple effect extends into pharmaceuticals, electronics and luxury categories, where shipping speed now influences up to half of final cart-abandonment decisions. Network density, predictive demand mapping and real-time driver re-routing remain the critical levers for sustaining this growth wave[1]“Quick Commerce Market in India Crosses USD 6 Billion Mark,” The Economic Times, economictimes.indiatimes.com.
Quick-Commerce Grocery and Food-Platform Boom
Food-delivery super-apps merged grocery, pharmacy and convenience runs into a single interface that now books more than 2.8 billion orders in Southeast Asia annually. Temperature-controlled micro-fulfillment centers and insulated tote systems have replaced corner stores as the backstage of this instant-meal economy. Platform algorithms adjust inventory every hour, aligning hyper-local demand surges with fleet availability, and some operators hit 85% on-time rates inside 15-minute windows. Regulatory hurdles persist, because food-safety labeling rules change by city, yet providers that master compliance turn those same rules into cost barriers for late entrants. The Asia-Pacific same day delivery market now sees grocery-linked tickets carry higher average order values than general parcels, a margin advantage reinforcing continued capital inflows. Grocery-anchored volume also stabilizes daily demand curves, flattening peak-hour swings and optimizing asset utilization[2]“UPI Transaction Statistics 2024,” Reserve Bank of India, rbi.org.in .
Urban Micro-Fulfillment and Last-Mile Tech Investments
Automated sortation, vision-based cubing and AI-directed route orchestration became baseline investments in 2024. DHL Express lifted its automated capacity 40% across regional hubs, shaving package processing times by a third and boosting on-time performance. SF Express robots now sort 12,000 parcels per hour, while rolling drone pilots cover sparsely populated Chinese townships. These upgrades reconfigure the Asia-Pacific same day delivery market by shifting inventory closer to front-end demand and slashing failed-delivery incidents. Early adopters enjoy lower per-order costs and shorter payback cycles, but the capex threshold for newcomers keeps climbing. Scalability follows a hub-of-hubs blueprint: numerous micro-sites marry with regional air gateways to enable both urban and cross-border immediacy.
Government Investment in Logistics and Digital Payments
Public policy is actively seeding logistics modernization. China’s 14th Five-Year Plan earmarked USD 1.4 trillion for digital infrastructure—5G, smart warehousing and autonomous-vehicle corridors included. India’s UPI platform processed 131 billion payments in 2024, crushing cash-on-delivery friction that once plagued rural shipments. ASEAN’s cross-border digital trade framework is rolling out, albeit unevenly, offering future duty-free thresholds and fast-lane customs for compliant players. These initiatives funnel long-term tailwinds into the Asia-Pacific same day delivery market, unlocking both volume and value gains while nudging operators toward standardized data exchanges and ESG-oriented fleet transitions.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High operating and labor costs | –0.8% | Developed APAC metros | Short term (≤ 2 years) |
| Urban congestion and infrastructure bottlenecks | –0.6% | Mega-cities across China, India, SEA | Medium term (2-4 years) |
| Fragmented city-level regulations | –0.5% | Multi-country operations | Long term (≥ 4 years) |
| Data-quality gap raising re-delivery costs | –0.4% | Emerging markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Operating and Labor Costs
Wage growth in mature APAC cities outpaces productivity gains, inflating courier expense structures. Insurance premiums for motorcycle couriers also climbed as regulators toughened safety compliance. Gig-economy surge pricing during peak shopping festivals squeezes margins for operators locked into flat-rate consumer tariffs. Companies counter with automated sortation and densified drop clusters, yet breakeven thresholds remain sensitive to overtime and fuel surcharges. Consolidation is therefore accelerating, gradually steering the Asia-Pacific same day delivery market toward operators able to finance tech upgrades and fleet renewal at scale[3]“EV Sales Report 2024,” Ministry of Heavy Industries, heavyindustries.gov.in .
Urban Congestion and Infrastructure Bottlenecks
Average peak-hour speeds in Jakarta hover near 12 km/h, and congestion in Mumbai adds up to 50% more route time than off-peak windows. Such gridlock jeopardizes on-time performance guarantees, forcing dispatchers to load excess slack into schedules, elevating both labor and vehicle costs. Regulatory caps on delivery-vehicle entry during rush hours compound the challenge. In response, carriers experiment with cargo-bike fleets, walk couriers and neutral-drop lockers to bypass traffic-choked cores. Successful models recycle failed-attempt parcels into next-hour micro-hubs, reducing customer inconvenience while protecting margins[4]“Urban Transport Challenges-Asia-Pacific Solutions 2024,” Asian Development Bank, adb.org.
Segment Analysis
By End User Industry: Offline Retail Transformation
E-commerce retained 53.49% revenue share in 2024, its gravitational pull anchored by platform incentives and buyer habituation to one-click same-day gratification. Cross-border marketplace sellers now use local fulfillment stock to achieve ‘domestic-speed’ delivery in foreign markets, deepening network interdependencies and raising switching costs.
Wholesale and retail trade, however, charts the fastest 8.44% CAGR between 2025-2030 as brick-and-mortar chains deploy ship-from-store and dark-store models to fend off purely digital rivals. The Asia-Pacific same day delivery industry is no longer confined to front-door drops; it now involves shelf-restocking, click-and-collect loops and reverse logistics for instant return credits. Healthcare and manufacturing remain supportive verticals, using same-day lanes for inventory risk reduction in life-critical or high-value supply chains.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Accelerates Despite Complexity
Domestic lanes generated 68.25% of 2024 value, buoyed by entrenched e-commerce ecosystems in China and India. Dense urban clusters allow carriers to run route-dense loops that compress cost per stop while preserving short promise windows. Yet customs-light models facilitate trans-border activity that increasingly mirrors domestic convenience levels.
International same-day consignments are forecast to rise at an 8.39% CAGR between 2025-2030, driven by financial documents, urgent prototypes and cross-exchange pharma samples. FedEx’s 2024 rollout of a Japan-South Korea-Taiwan sprint network guaranteeing 12-hour delivery exemplifies the model. Automated pre-clearance modules, tariff-coded product catalogs and IOSS-style tax regimes lower administrative friction, but operators must still buffer for variable inspection times and differing de-minimis thresholds. Scalability rests on bilateral agreements and digitally linked customs that replicate domestic procedural simplicity.
By Shipment Weight: Medium Weight Gains Momentum
Light parcels commanded 76.66% of 2024 values, anchoring the classic e-commerce parcel profile. Fashion, cosmetics and smartphone accessories move swiftly through automated cross-belt sorters tuned for small-item throughput. The Asia-Pacific same day delivery market size for light parcels is projected to expand steadily as consumer categories broaden into wellness and micro-electronics.
Medium parcels are the stand-out growth pocket, pacing at 7.78% CAGR between 2025-2030 as auto parts, bulk grocery packs and industrial consumables adopt same-day norms. Providers retrofit vans with modular racks and temperature zones to handle mixed-weight loads without turnaround delays. This shift diversifies revenue streams and shields carriers from seasonal demand swings tied to fashion cycles. Heavy parcels stay niche, focused on medical devices and mission-critical MRO spares where downtime penalties dwarf delivery premiums.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Air Cargo Drives Premium Growth
The air segment is forecast to grow at an 8.27% CAGR between 2025-2030, the fastest among all transport modes. This surge positions the air corridor as a pivotal lever for time-critical B2B consignments, especially pharmaceuticals and high-value electronics that underpin premium fee structures. Dedicated freighter additions by DHL Express expanded regional lift capacity 40% in 2024, enhancing east-west same-day coverage between key financial hubs. As aircraft belly hold availability fluctuates with passenger travel, integrators hedge with leased narrow-body cargo jets, reducing cut-off times and improving schedule reliability.
Road still claims 50.99% of 2024 revenue thanks to last-mile indispensability and continental geography advantages. However, rising tolls and urban congestion tilt cost-benefit equations toward hybrid models: shippers lift-out by air to perimeter airports, then onward-truck into metro hubs for final distribution. The Asia-Pacific same day delivery market gains resilience from this multimodal mix, allowing operators to match shipment urgency and price elasticity on a per-order basis. Rail and sea-air combinations remain niche but strategic, supporting Belt-and-Road land bridges that shave customs dwell times in Central Asia.
Geography Analysis
China held 72.86% of 2024 value thanks to unmatched parcel density and policy-backed digital logistics investments. Same-day penetration reached 35% in top-tier metros, supported by nationwide 5G rollout and citywide drone test beds. Pilot programs for unmanned ground vehicles in Suzhou and Shenzhen further signal a pathway to driver-light operations that can expand rural coverage without proportional labor additions. Urban market saturation and evolving antitrust scrutiny may temper headline growth, yet incremental volume will flow from deep-tier city rollouts and cold-chain pharmacy lanes.
India is poised for double-digit expansion at 12.38% CAGR between 2025-2030, propelled by a 131 billion-transaction digital payment backbone, young consumer demographics and rising EV delivery penetration. Tier-2 and tier-3 municipalities contribute a swelling share of gross merchandise value, unlocking new frontiers for the Asia-Pacific same day delivery market. Government-subsidized battery-swap corridors plus GST-streamlined interstate checkpoints reduce dwell-time inefficiencies, pushing viable same-day radii deeper into the hinterland.
Japan, Australia and a constellation of Southeast Asian economies—Indonesia, Thailand, Malaysia and Vietnam—collectively supply the balance of revenue. Japan values precision over sheer speed, accepting premium fees for time-slot certainty and parcel integrity assurances. Australia leverages air bridges to counter vast geography, while its regulatory convergence with New Zealand fosters a trans-Tasman express lane. Southeast Asia remains fragmented; however, ASEAN’s digital-economic blueprint promises to standardize customs and data-sharing protocols, setting the stage for multi-country subscription-style delivery passes that mimic EU paradigms once implementation gaps narrow.
Competitive Landscape
The Asia-Pacific same day delivery market hosts a moderate consolidation where domestic behemoths jostle with global integrators and agile local specialists. In China, SF Express, JD Logistics, and Meituan retain outsized mindshare through vertically integrated ecosystems that embed shipping at the cart level. DHL, FedEx, and UPS fight for premium cross-border lanes, routinely adding narrow-body freighters and metro-adjacent sort centers to cement service reliability. Meanwhile, Ninja Van and Blue Dart ride region-specific insights—street-level addressing quirks, cash-handling norms—to punch above their asset weight.
Technology spend defines the competitive arms race. DHL’s 2024 USD 350 million automation plan upgraded 12 APAC hubs with AI vision and robotic pickers. SF Express answered through a USD 280 million buyout of Kerry Logistics’ Southeast Asian parcel unit, instantly scaling last-mile reach in Vietnam and Thailand. Blue Dart’s alliance with Mahindra Electric to roll out 2,500 EV vans underscores the pivot toward carbon-light fleets that double as cost hedges against fuel volatility.
Strategic differentiation is trending toward vertical specificity—cold-chain pharma, luxury fashion concierge, industrial MRO emergency resupply—each demanding tailored handling protocols and value-added IT hooks. New entrants eye white-label technology layers that retrofit incumbent fleets with route optimization, dynamic slotting and on-trip upsell widgets. Scale economics coupled with regulatory mastery will likely drive the next consolidation wave, nudging the Asia-Pacific same day delivery market toward an oligopoly of tech-fortified, multi-country operators.
Asia Pacific Same Day Delivery Industry Leaders
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SF Express (KEX-SF)
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Yamato Holdings Co., Ltd.
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DHL Group
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ZTO Express
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China Post
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2024: DHL Express pledged USD 350 million to automate 12 APAC hubs, cutting processing cycles by 30% and elevating accuracy scores.
- November 2024: SF Express finalized a USD 280 million takeover of Kerry Logistics’ Vietnam and Thailand express units to expand Southeast Asian reach.
- October 2024: FedEx unveiled a same-day air-ground hybrid spanning Japan, South Korea and Taiwan with 12-hour delivery guarantees for high-value industries.
- August 2024: Blue Dart joined Mahindra Electric to deploy 2,500 EV delivery vehicles across Indian metros by 2025, targeting a 40% cost reduction.
Asia Pacific Same Day Delivery Market Report Scope
Air, Road, Others are covered as segments by Mode Of Transport. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Domestic, International are covered as segments by Destination. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry. Australia, China, India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Thailand, Vietnam are covered as segments by Country.| Air |
| Road |
| Others |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Domestic |
| International |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Australia |
| China |
| India |
| Indonesia |
| Japan |
| Malaysia |
| Pakistan |
| Philippines |
| Thailand |
| Vietnam |
| Rest of Asia-Pacific |
| Mode of Transport | Air |
| Road | |
| Others | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Destination | Domestic |
| International | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others | |
| Country | Australia |
| China | |
| India | |
| Indonesia | |
| Japan | |
| Malaysia | |
| Pakistan | |
| Philippines | |
| Thailand | |
| Vietnam | |
| Rest of Asia-Pacific |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
